Cosmax Awards 150% Bonuses Following Record Q2 Performance

Cosmax achieved its highest-ever performance in the second quarter of this year and paid substantial bonuses to all employees.

According to industry sources on the 28th, Cosmax paid bonuses equivalent to 150% of the base salary to all employees last month.

Cosmax achieved its highest-ever consolidated performance in the second quarter this year, driven by a strong domestic market following the reopening of economic activities and increased exports to Japan. Operating profit rose 167.3% year-on-year to 46 billion KRW, and sales increased by 18.3% to 479.3 billion KRW. Net profit surged by 414.4% to 27.4 billion KRW.

Cosmax announced on the 10th that its consolidated sales for the second quarter reached 479.3 billion KRW, an 18.3% increase compared to the same period last year, and operating profit was 46 billion KRW, up 167.3% year-on-year. Both sales and operating profit marked the highest quarterly results.

Cosmax, which usually pays bonuses at the beginning of the year and every July, expects to be able to pay bonuses again early next year if this growth trend continues.

Currently, the beauty industry anticipates good performance in the second half of the year as domestic small and medium-sized indie brands, the main customers of cosmetic ODM companies, gain worldwide popularity. According to Cosmax, the number of global clients expanded from about 1,200 in 2020 to over 1,500 last year.

The Chinese government’s approval of group tourist visa issuance to Korea is also seen as a positive factor, with expectations that consumption by Yo-keo (Chinese group tourists) will significantly increase in the second half of this year.

A Cosmax representative said, “We maximized profits by expanding ODM volume to 75% of the total in the U.S. market,” and added, “We plan to open a sales office in the western region within this year to add new indie brand clients.”